Millions of Americans live in modular homes—and for good reason. Modular building projects are more affordable and take 30 to 50% less time to complete than traditional structures. Plus, they're better for the environment and make a great choice for those living in remote regions.

Modular homes are pre-built in a factory and then placed on a foundation. As a result, there are fewer delays due to bad weather and other unforeseen events. The materials used for construction are durable and can last a lifetime.

One of the primary advantages of modular homes is their low price tag. Buyers can expect to pay around $270,000 for a 1,800-square-foot modular home, depending on its location, amenities, and materials used. Tiny homes can cost as little as $36,000.

But how does a modular home differ from a mobile home? Most importantly, is it worth the money? Let's find out!

What Is a Modular Home?

Modular homes are built in climate-controlled areas and then transported to the buyer's location. Here they are assembled on a premade foundation. The initial structure consists of several modules that can be joined together in a variety of styles and configurations.

Depending on the design and manufacturer, your new home could be ready in as little as two weeks. The more complex your project, the longer it takes to complete it. Generally, modular homes require minimal assembly.

These structures are equal or superior in quality to site-built homes and meet the standards set by the IRC (International Residential Code). Once assembled, they can be connected to utilities and fitted with flooring, air conditioning, lighting systems, and so on.

Note that modular homes are not the same as manufactured or mobile homes. The latter are installed on steel trainers with wheels attached. 

According to a 2019 McKinsey report, this industry could reach $130 billion by 2030 in the U.S. and Europe while delivering over $22 billion in cost savings per year. With that being said, here are six advantages of modular homes. 

1. Faster Move-In

Modular construction can reduce the time to build a new home by up to 50%, according to McKinsey. Since the construction process takes place indoors, there are no delays due to rain or snow.

Depending on the manufacturer, you could move into your new home in as little as two months. If you opt for a tiny home, the construction process could take less than a month to complete.

2. Less Waste

Construction and demolition materials generated about 600 million tons of debris in 2018. Modular construction produces significantly less waste than traditional construction methods.

The materials used for modular homes are stored in factories. As a result, they are unlikely to get stolen or damaged. On top of that, manufacturers often recycle or reuse the leftovers.

Also, note that many modular homes built nowadays are energy-efficient. This can further contribute to your efforts to protect the environment. Your utility bills will be lower, too.

3. Reduced Construction Costs

As McKinsey notes, modular homes are much cheaper to build than conventional houses.

First of all, this business model reduces or eliminates the need for subcontractors. Second, prefab homes are faster to build, which in turn may reduce site overhead and construction management costs.

Most manufacturers use standardized, automated processes to build such structures. This factor alone results in cost savings. Plus, module assembly requires a lower-skilled labor force, which can further bring the costs down.

Construction firms pass on these savings to customers. Buyers can expect to pay as little as $80 to $160 per square foot, not including the assembly process and amenities. That's about half of what you'd pay for a site-built home.

4. Greater Design Flexibility

Modular homes may offer greater flexibility in terms of design than traditional houses. Most construction firms employ engineers and architects who use complex software to craft a design that meets your needs.

Depending on your preferences, you can opt for special stair modules, partially open-sided modules, four-sided modules, and everything in between.

Manufacturers can build rank modular homes, multi-family homes, colonial-style prefab homes, and more. If, say, you want a holiday home, ask the manufacturer to use natural log siding for a rustic feel.

5. Increased Durability

These structures meet the highest quality and safety standards set by regulatory bodies. They are resistant to damp, cold, and strong winds.

The modules that make up prefab homes are designed to withstand travel requirements. Therefore, they tend to be more durable than traditional construction materials. Prefab cabins, for example, can often withstand heavy rain and storms.

Overlook homes and modular houses in general are free from on-site problems. Their construction isn't interrupted by snow or rain and allows for better control over every step of the process. 

6. Ideal for Remote Locations

Modular construction is a popular choice among those living in remote locations. It can also be a good fit for anyone looking to have a holiday home in the wild.

If you live in a remote area, it can be difficult to find contractors willing to spend months at your location. With a modular home, you don't have to worry about these issues. You can reach out to a construction firm located miles away from you and have your home built in one central location.

Modular Homes Are a Smart Investment

Modular homes can be just as beautiful and durable as traditional houses. Plus, they have a lower price tag and offer greater flexibility in terms of design. These structures are inspected at every step of the construction process, which ensures their quality and safety.

All in all, prefab homes are a smart investment. You just need to find a reliable builder who doesn't compromise on quality. Reach out to our team for more information on modular homes for sale, pre-built cabins, and tiny homes!